Search found 119 matches

by RandomWord
Thu Apr 30, 2020 3:08 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I started this adventure in March 2019 with the original allocation of 40/60. Switched allocation to UPRO 55/ TMF 45 when HEDGEFUNDIE made that recommendation. I have rebalanced every quarter. Well as of today I have doubled my investment. I just wanted to thank HEDGEFUNDIE and all others that have...
by RandomWord
Wed Apr 29, 2020 8:52 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I started this adventure in March 2019 with the original allocation of 40/60. Switched allocation to UPRO 55/ TMF 45 when HEDGEFUNDIE made that recommendation. I have rebalanced every quarter. Well as of today I have doubled my investment. I just wanted to thank HEDGEFUNDIE and all others that have...
by RandomWord
Tue Apr 28, 2020 4:50 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

You can't bet directly on VIX. You can only bet on VIX futures (or other products giving exposure to VIX futures) or options. These are bets on where VIX will be in the future. VIX futures function as an insurance product for the holder, such that if there is a an unexpected VIX spike they are paid...
by RandomWord
Mon Apr 27, 2020 4:58 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

That's the problem though. The only products available are based on VIX futures, which do not track ^VIX well. Thanks for pointing this out. I was learning this myself today as I was seeing the difference between the various VIX ETFs and ^VIX. I guess that is why MoneyMarathon used a smaller alloca...
by RandomWord
Thu Apr 23, 2020 12:55 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

https://www.etfreplay.com/combine.aspx seems to have daily data. I can't show multiple portfolios at once with the free version but:
55 UPRO/45 TMF:
Image
50/40/10 UPRO/TMF/VIXY:
Image

Still a huge drop, but noticeably less max drawdown.
by RandomWord
Thu Apr 23, 2020 12:31 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Portfoliovisualizer only calculates metrics monthly so shows a low draw down. Need to run it out daily to really see. I have a spreadsheet that calculates daily results for any weighting and any group of etfs. Eye opening. Draw down for S&P 500 was 33.9% so not much worse for leveraged. The daily v...
by RandomWord
Thu Apr 23, 2020 11:18 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Wow, this is really interesting. You can historically get higher Sortino, high returns, and lower dependence on long term treasuries if you add in a dash of a long volatility ETF. We've been missing it, I think, since the VIIX was started in 2010. https://www.portfoliovisualizer.com/backtest-portfo...
by RandomWord
Thu Apr 23, 2020 11:09 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I've got an idea for a refinement on this that I want to share and get feedback on. I think this strategy has a very high expected return. But the risk also extreme. There is a very real risk of losing half or more in a single month, as we've just seen. So I'm not really interested in boosting the ...
by RandomWord
Wed Apr 22, 2020 8:23 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I've got an idea for a refinement on this that I want to share and get feedback on. I think this strategy has a very high expected return. But the risk also extreme. There is a very real risk of losing half or more in a single month, as we've just seen. So I'm not really interested in boosting the r...
by RandomWord
Sun Mar 22, 2020 10:19 pm
Forum: Investing - Theory, News & General
Topic: It's Not Different This Time
Replies: 348
Views: 31203

Re: It's Not Different This Time

This is the first time I've experienced a market crash from something that might also kill me.

I guess the world wars were like that, for European investors. But it seems pretty different from the more recent crashes.
by RandomWord
Sun Mar 22, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: It's Not Different This Time
Replies: 348
Views: 31203

Re: It's Not Different This Time

One thing that makes me think "this is different" is that most wall street traders, analysts, etc are now stuck working from home. Of course you can do a lot from home these days, but it's still not the same as being in an actual office or on the ground floor. Who is going to make the market efficie...
by RandomWord
Sat Mar 21, 2020 2:41 pm
Forum: Investing - Theory, News & General
Topic: Why do people keep saying you have to be right twice?
Replies: 213
Views: 7603

Re: Why do people keep saying you have to be right twice?

I think that saying is aimed at "fine-tuned" market timing. If you just want to duck out to avoid a small drop and then duck back in again, you might be right about the initial drop but then wait too long and the market has already recovered before you get back in. Of course with this crash, anyone ...
by RandomWord
Wed Mar 18, 2020 9:45 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I have updated the OP to show my current portfolio, lest anyone get the wrong idea about my transparency and commitment. Much respect to you for doing that. I hope you're not feeling too down right now. Like you said, there have been times in the past when this portfolio has crashed, only to shoot ...
by RandomWord
Fri Mar 13, 2020 6:10 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Apropos of nothing, just wanted to point out that UPRO is down 55% in the past month while VOO is down 20%. Over the course of what is likely the most volatile month ever for the stock market. Where are the volatility decay haters? Isn't that because it's selling off as VOO goes down, so the effect...
by RandomWord
Fri Mar 13, 2020 5:48 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Apropos of nothing, just wanted to point out that UPRO is down 55% in the past month while VOO is down 20%. Over the course of what is likely the most volatile month ever for the stock market. Where are the volatility decay haters? Isn't that because it's selling off as VOO goes down, so the effect...
by RandomWord
Fri Mar 13, 2020 1:39 pm
Forum: Investing - Theory, News & General
Topic: Permanent Portfolio Enthusiasts: Current Environment?
Replies: 4
Views: 430

Re: Permanent Portfolio Enthusiasts: Current Environment?

So far gold has done absolutely nothing to help with this crash. Although, that might be because it's tied to oil, which has tanked. Short-term treasuries have done very well. That seems better than cash/money-market, to me. The Permanent Portfolio doesn't seem any safer than a regular stock/bond m...
by RandomWord
Fri Mar 13, 2020 1:13 pm
Forum: Investing - Theory, News & General
Topic: Permanent Portfolio Enthusiasts: Current Environment?
Replies: 4
Views: 430

Re: Permanent Portfolio Enthusiasts: Current Environment?

So far gold has done absolutely nothing to help with this crash. Although, that might be because it's tied to oil, which has tanked. Short-term treasuries have done very well. That seems better than cash/money-market, to me. The Permanent Portfolio doesn't seem any safer than a regular stock/bond mi...
by RandomWord
Fri Mar 13, 2020 12:36 pm
Forum: Investing - Theory, News & General
Topic: I Bonds are a screaming buy - Tipswatch
Replies: 138
Views: 21556

Re: I Bonds are a screaming buy - Tipswatch

Is the value of redeeming these bonds based on compound interest for however long I've had it? Or does it pay a coupon regularly, and then get redeemed for its original face value? Sounds like it's the former? Yes, it's the former. The word "Bond" in "Series I Savings Bond" is unfortunate since the...
by RandomWord
Fri Mar 13, 2020 12:08 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18784
Views: 2626168

Re: U.S. stocks in free fall

Today's fake rally created by the mom and pops investors is really aggravating, it's obvious we are not near the bottom at these levels... my 401k auto contribs are going in today and my taxable auto contribs are going in on Monday... and I don't want to pick up equities at a 3% premium only for it...
by RandomWord
Wed Mar 11, 2020 9:13 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

With 30y rate at 1.33% there is little upside remaining for TMF. In 2010 30y Bond yield was around 5%, now it is 1.33%. https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx Looking at Germany, which has zero rate for a few years, it's 30 year Bond yield before crisis was between 0 ...
by RandomWord
Tue Mar 10, 2020 5:37 pm
Forum: Investing - Theory, News & General
Topic: I Bonds are a screaming buy - Tipswatch
Replies: 138
Views: 21556

Re: I Bonds are a screaming buy - Tipswatch

-If I sell them back to the government before they mature, how much do I get? And what are the tax consequences of that? Perhaps this can best be explained with an illustration. The last time I Bonds were issued with a 0.20% fixed rate was November 2013 through April 2014. If you had bought a $10,0...
by RandomWord
Tue Mar 10, 2020 11:32 am
Forum: Investing - Theory, News & General
Topic: I Bonds are a screaming buy - Tipswatch
Replies: 138
Views: 21556

Re: I Bonds are a screaming buy - Tipswatch

Can someone answer a few basic questions about these for me? -Who can buy these? Is it only for Americans? -If I buy them, am I allowed to resell these to someone else (pretty sure the answer is no)? -If I sell them back to the government before they mature, how much do I get? And what are the tax c...
by RandomWord
Mon Mar 09, 2020 11:47 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

It sounds weird, but that is pretty much how I feel. leveraging bonds has worked so far, but can it keep working when rates are near zero? Not to mention how dangerous it feels to be highly leveraged on an account that is now a substantial part of my investments. As rates continue to drop towards 0...
by RandomWord
Mon Mar 09, 2020 11:18 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Anybody have a Plan B to specifically reverse the TMF bet, rather than just rebalance into UPRO (especially if gone?). A hedge-on-the-hedge? This is what brought me back in here. TMF is doing great for me right now, but I'm worried about it failing. I seem to remember people talking about another f...
by RandomWord
Sun Mar 08, 2020 9:45 pm
Forum: Investing - Theory, News & General
Topic: Would you not buy a balanced fund because bond rates are so low now? Will bogleheads always use the Total Bond fund?
Replies: 9
Views: 960

Re: Would you not buy a balanced fund because bond rates are so low now? Will bogleheads always use the Total Bond fun

I wonder if we'll see more of a shift towards gold? Sure, gold doesn't produce anything. But if bond rates go negative, nothing is at least better than negative something.
by RandomWord
Sun Mar 08, 2020 9:29 pm
Forum: Investing - Theory, News & General
Topic: How low will 10YR treasuries go? Predictions
Replies: 1
Views: 383

Re: How low will 10YR treasuries go? Predictions

I have absolutely no idea, and that's pretty scary.
by RandomWord
Sun Mar 08, 2020 2:01 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Is anyone else NOT concerned about TMF? To me it look like there are a lot of reasons for rates to keep heading down and not many for them to go back up (Powell seems to be seeing something that everyone else isn't because the economy has been crushing it and he's flat and then down on a questionab...
by RandomWord
Sat Mar 07, 2020 2:52 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

The whole premise of risk parity is to own a basket of different assets (bonds stocks commodities) that have different risk premiums. This true diversification then lowers the overall portfolio volatility and even though the unleveraged CAGR is lowered we can then use leverage to bring the CAGR bac...
by RandomWord
Sat Mar 07, 2020 2:37 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

The whole premise of risk parity is to own a basket of different assets (bonds stocks commodities) that have different risk premiums. This true diversification then lowers the overall portfolio volatility and even though the unleveraged CAGR is lowered we can then use leverage to bring the CAGR bac...
by RandomWord
Sat Mar 07, 2020 2:19 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I’d get out of tmf now. The upside is vastly limited compared to the down side. You might be right, but people thought a little over a year ago that interest rates had nowhere to go but up. Interest rate changes are confoundedly difficult to predict. Yes, it seems almost imposibble to predict inter...
by RandomWord
Sat Mar 07, 2020 2:01 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I’d get out of tmf now. The upside is vastly limited compared to the down side. You might be right, but people thought a little over a year ago that interest rates had nowhere to go but up. Interest rate changes are confoundedly difficult to predict. Yes, it seems almost imposibble to predict inter...
by RandomWord
Sat Mar 07, 2020 1:41 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I’d get out of tmf now. The upside is vastly limited compared to the down side. You might be right, but people thought a little over a year ago that interest rates had nowhere to go but up. Interest rate changes are confoundedly difficult to predict. Yes, it seems almost imposibble to predict inter...
by RandomWord
Sat Mar 07, 2020 1:23 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Do you think that if short term treasuries became nominally negative that bank accounts would start charging a fee as well? If not, then individuals looking for safety, although maybe not institutions, might just park their cash in a bank account. Savings accounts in the EU already have negative ra...
by RandomWord
Mon Dec 09, 2019 5:11 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

If you never reset your leverage and you are using enough you will wipe out. It's always 1 over the leverage factor equals a wipeout if you assume no adjustment. So 3x leverage = 33% decline = wipeout, and 1.5 leverage = 67% decline = wipeout. There is a product PPLC by Direxion that gives 1.35x le...
by RandomWord
Wed Dec 04, 2019 2:35 pm
Forum: Investing - Theory, News & General
Topic: WHY, exactly or generally, are 401K's designed/managed the way they are? (SPD, choices, matches, rules, etc...)
Replies: 10
Views: 558

Re: WHY, exactly or generally, are 401K's designed/managed the way they are? (SPD, choices, matches, rules, etc...)

My understanding is that the 401K system was never really "designed" at all. It was essentially a loophole that some clever accountants found in the tax code. The government allows it, since they do want to encourage retirement savings after all, but it has a lot of flaws that you point out. It coul...
by RandomWord
Tue Nov 19, 2019 1:36 pm
Forum: Investing - Theory, News & General
Topic: Are individual stocks back on the table now that we have $0 commissions?
Replies: 56
Views: 4687

Re: Are individual stocks back on the table now that we have $0 commissions?

Philosophically, I would enjoy being able to do this. It would be nice to actually own the shares, and be able to vote, instead of handing over control to a middleman to do it for me. As of Oct 31, 2019, Microsoft was 4.33% of VFIAX. If you had $1,000,000 in a roll-your-own S&P500 index, that means...
by RandomWord
Mon Nov 18, 2019 2:55 pm
Forum: Investing - Theory, News & General
Topic: Are individual stocks back on the table now that we have $0 commissions?
Replies: 56
Views: 4687

Re: Are individual stocks back on the table now that we have $0 commissions?

Philosophically, I would enjoy being able to do this. It would be nice to actually own the shares, and be able to vote, instead of handing over control to a middleman to do it for me. If it saves a few hundred bucks a year, that's just a bonus. I agree that it's likely too much work to do it right n...
by RandomWord
Thu Oct 10, 2019 10:26 pm
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 68
Views: 8205

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

You would have to trade almost every day to closely hew to the index. We always say the big benefit of an index fund is that it doesn’t have to trade to rebalance, everything just moves up and down in the market based on market cap. Why would it be any different for an individual? An index fund onl...
by RandomWord
Tue Oct 08, 2019 4:37 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Umh perhaps. I wouldn't have guessed so. Look my point is that instead of saying "it must be X because otherwise there's arbitrage", I would just calculate it (or use a tool; I can only imagine CME has one already). I've only really looked at S&P futures and pretty consistently I see them show clos...
by RandomWord
Tue Oct 08, 2019 4:35 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Umh perhaps. I wouldn't have guessed so. Look my point is that instead of saying "it must be X because otherwise there's arbitrage", I would just calculate it (or use a tool; I can only imagine CME has one already). I've only really looked at S&P futures and pretty consistently I see them show clos...
by RandomWord
Tue Oct 08, 2019 1:16 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Also.... this guy says that the implied repo rate in Treasury futures markets is SOFR.... not 3 month LIBOR (which it is for equity futures). https://seekingalpha.com/article/4250700-use-statistics-play-u-s-treasury-yield-curve Umh perhaps. I wouldn't have guessed so. Look my point is that instead ...
by RandomWord
Mon Oct 07, 2019 1:30 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4902
Views: 422818

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Let's try my thought experiment. Let's forget about historical data. For a million and one reasons, it could lead you astray. Let's just start baby steps: 1) Do you truly believe rates follow a random walk? Like they're coin flips? As in "rates are as likely to go up than down"? Before I answer the...
by RandomWord
Wed Oct 02, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: How to implement S&P Leap strategy?
Replies: 25
Views: 2485

Re: How to implement S&P Leap strategy?

What I AM saying is that if an option has a Delta of 1 and it cost you a third of the price of the underlying (strike price around 66% of underlying), that is a leveraged position of 3:1. Do you think this is incorrect? You have nailed the wrongness of your statement. Having a portfolio with a Delt...
by RandomWord
Tue Oct 01, 2019 10:40 pm
Forum: Investing - Theory, News & General
Topic: If all brokerages charged zero commission for trades, which brokerage would you pick?
Replies: 80
Views: 8231

Re: If all brokerages charged zero commission for trades, which brokerage would you pick?

Its the race to zero Why stop at zero? Maybe some broker will start paying us for our trades. Actually, if I amortize the $6k in new account bonus money TDA has paid me since 2015 against the few ETF trades I pay for each year, it seems that TDA is already paying me for my trades. Based on my exper...
by RandomWord
Tue Oct 01, 2019 3:44 pm
Forum: Investing - Theory, News & General
Topic: If all brokerages charged zero commission for trades, which brokerage would you pick?
Replies: 80
Views: 8231

Re: If all brokerages charged zero commission for trades, which brokerage would you pick?

FrugalConservative wrote:
Tue Oct 01, 2019 3:32 pm
Its the race to zero
Why stop at zero? Maybe some broker will start paying us for our trades.
by RandomWord
Mon Sep 30, 2019 11:34 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 201
Views: 58892

Re: Interactive Brokers (Best Kept Secret)

IB execution quality ( which probably matters more than commission but hard to measure) is said to be better than any other retail brokers. IB is connected to more liquidity pools and use smart order routing system meaning better chance of orders getting executed at favorable price. IB publishes a ...
by RandomWord
Sat Sep 28, 2019 7:22 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 201
Views: 58892

Re: Interactive Brokers (Best Kept Secret)

IB execution quality ( which probably matters more than commission but hard to measure) is said to be better than any other retail brokers. IB is connected to more liquidity pools and use smart order routing system meaning better chance of orders getting executed at favorable price. IB publishes a ...
by RandomWord
Tue Sep 24, 2019 12:52 pm
Forum: Investing - Theory, News & General
Topic: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures
Replies: 115
Views: 13707

Re: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures

But I also think it's important to keep in mind the scale. The leverage on these things is so large that it's easy to lose track of the big picture. I don't think $50 per year or whatever on a $200,000 notional value is worth worrying about it. Now, if there's some reason why eurodollars should del...
by RandomWord
Mon Sep 23, 2019 10:35 pm
Forum: Investing - Theory, News & General
Topic: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures
Replies: 115
Views: 13707

Re: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures

Can you go into detail on the cost savings for eurodollars vs treasury futures? Because it doesn't seem like it should be very much. Assuming you're trading the front contract, you should be able to pay just one tick on the spread, so 1/256 * 2000, or slightly less than $8. Call it $10 per contract...
by RandomWord
Mon Sep 23, 2019 5:10 pm
Forum: Investing - Theory, News & General
Topic: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures
Replies: 115
Views: 13707

Re: A gentle alternative to HEDGEFUNDIE's excellent adventure with 2-Year Treasury Futures

I held a portfolio quite similar to this for the past two years, but toned it down a couple of weeks ago because I was getting worried. Over those two years my bond positions contributed about 6% growth to my total account value, so I disagree with those people who think the proposed bond position ...